What does the Centrifuge Parachain mean for the Polkadot ecosystem?
It has never been clearer that interoperability will be key to the future of blockchains, and Polkadot parachains will be a giant leap forward in advancing the technology until it eventually achieves mass adoption.
Read on to find out what we can bring to the Polkadot ecosystem and the entire Decentralized Finance space.
Centrifuge has been online since May 2020, reaching a TVL of nearly US$50 million, and the cumulative value of Financed Assets is US$64 million. Our mission is to unlock economic opportunity for all and make Financing accessible to everyone without the use of third parties or intermediaries (Bank 👀).
So far, Centrifuge has been using Ethereum’s liquidity, which means users already have access to the largest DeFi ecosystem. We've integrated two of the biggest DeFi protocols in Ethereum: MakerDAO and Aave (coming soon!). To scale and unlock liquidity, parachains connecting the Polkadot ecosystem are a critical step in the future of DeFi.
first level title
Polkadot Ecosystem - Home of Real World DeFi
Polkadot solves the scalability issues found in the Ethereum network. This is thanks in part to allowing projects to deploy their own parachains: blockchains that can run in parallel and connect to Polkadot's "relay chain." Due to Ethereum scaling issues, Gas fees are high and Transactions are slow (although still faster than many Tradfi transactions 😝). Linking Centrifuge to the Polkadot ecosystem will solve this problem.
Once Centrifuge is connected to the Polkadot network as a parachain, Trading will be cheaper and faster, allowing us to scale without limit. Centrifuge will bridge liquidity between blockchains, and enhanced interoperability means we can increase DeFi liquidity across the blockchain multiverse.
Centrifuge will increase DeFi liquidity across the blockchain multiverse
It's not just Centrifuge that will be expanded. DeFi will grow at an incredible rate on Polkadot. The entire DeFi will be able to reach hundreds of billions of TVL. Compared with other Crypto Assets, more people will be able to borrow and obtain Finance, more companies will be able to obtain Financing at competitive interest rates, and investors will be able to obtain more Assets at a more stable rate of return.
first level title
Let's imagine
Let's imagine a real use case that could happen when Polkadot and Centrifuge are connected. First up: Moonbeam. The most exciting Dapp on Ethereum will be built on Moonbeam, an Ethereum compatible smart contract parachain - making it easy for Centrifuge parachains to mine new sources of DeFi liquidity through the Polkadot network! Imagine Sushi, Aave and more. Moonbeam gives them the tools to quickly integrate into the Polkadot ecosystem, making Financing easier than ever for everyone.
first level title
text
Achieving real-world DeFi on the Polkadot network will require Centrifuge to win parachains in the next batch of Auctions, and we will be opening Crowdloan on December 15th! Both Acala and Moonbeam parachains will be live by the end of Batch 2 Auction, so interoperability can open in March - if you help us win a parachain slot, the Centrifuge parachain can go live!
If you want to contribute to expanding the Polkadot network to its limitless potential, please complete the registration at the following link (https://centrifuge.io/parachain/) and get early information about our upcoming Crowdloan launch.
